Thailand passes the draft decree on crypto regulation

Thai cabinet approves the draft decree with minimal changes from the initial variant proposed by Ministry of Finances, regulating ICOs and crypto taxation
30 March 2018   1364

Government regulation has been a hot topic among the crypto community as of late. And Thai officials have been among the first few countries to announce plans to formalize the regulation and taxation on the crypto assets. And now they have passed the draft decree to regulate the cryptocurrencies and initial coin offerings.

The Thai cabinet has finally approved the draft of a royal decree to regulate cryptocurrencies and ICOs. Nothing is hugely different from the draft proposed by the Ministry of Finance earlier this month. The sole significant change from the precious version has been in the definition of the digital asset, which now reads “cryptocurrencies and digital tokens, removing other assets such as electronic data, as specified in the previous draft”, according to the Bangkok Post. The only thing left to do is to publish the decree in the Royal Gazette, after which the decree will become law and come into full effect.

Also, taxation rules have been finalized for the crypto assets. According to the Bangkok Post:

"Investors who make digital-asset related trades will be liable for a 7% value-added tax (VAT) payment, on top of the 15% withholding tax on capital gains and returns from such investments, when the new law is enforced…Retail investors will be exempt from paying VAT if they trade digital assets through exchanges."

And the ICOs now have to register in advance with the Thai SEC. All existing companies involved in the crypto market have to get licenses and report information to anti-money laundering office. The current ICOs have 90 days to report to SEC, while all the new offerings have to be registered before the actual start of the offerings.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   163

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.